Written Commentary
LIVESTOCK AM OUTLOOK
If any retailers need beef for the 4th of July, this is the week they need to order it. Going ahead, price will depend on the availability of cattle, if exports can increase and to see if consumers were buying this spring because of government payments and pent up demand getting out after 15 months of COVID 19 lockdown.
Feedlots may be moving lighter cattle because of high feed costs, and likely because heat is affecting rates of gain. The average grade last week was 81.9% and grade has been dropping over the past several weeks.
A year ago, packers were getting back to 80% or so daily kill and then making up what they needed with a big Saturday kill. Last year the weekly slaughter was 2,593,000 head. This year, with no complications like COVID, the weekly slaughter was 2,443,000 head. Hog weights are going down and slaughter is going down.
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